Issue - meetings

Cabinet, at its meeting on 3 February 2022, considered the attached report of the head of finance on the the draft revenue budget 2022/23, and the capital programme to 2026/27.

The Scrutiny Committee considered the report at its meeting on 7 February 2022 and made no recommendations to Cabinet.

RECOMMENDATIONS: to

1.    set the revenue budget for 2022/23, as set out in appendix A.1 to the head of finance’s report to Cabinet on 3 February 2022;

2.    approve the capital programme for 2022/23 to 2026/27, as set out in appendix D.1 to the report, together with the capital programme changes as set out in appendix D.2 and appendix D.3 to the report;

3.    set the council’s prudential limits, as listed in appendix E to the report;

4.    approve the medium-term financial plan to 2026/27, as set out in appendix F to the report;

5.    allocate £500,000 to fund the Communities Capital and Revenue grant scheme;

6.    ask officers to review the Medium-Term Financial Strategy following the announcement by the Secretary of State for Levelling Up, Housing and Communities of changes to the council’s future funding streams.

The chair referred to regulations that require councils to record the names of those councillors voting in favour, against or abstaining from any vote on the budget, including amendments, and the council tax. In accordance with the regulations she would call for a named vote on each of these matters at this meeting.

The chair reminded councillors that they were not entitled to vote on any issue affecting the level or administration of the council tax or other decisions which might affect the making of any such calculation such as the budget, if they were over two months in arrears with their council tax payments. Where such circumstances applied, councillors were under a statutory obligation to disclose the restriction placed on them and refrain from voting at the relevant meeting. No councillor made any such declaration.

Council noted the report of the chief finance officer on the robustness of the budget estimates and the adequacy of the reserves.

Council considered Cabinet’s recommendations, made at its meeting held on 3 February 2021, on the revenue budget for 2021/22 and the capital programme to 2025/26. Scrutiny Committee had considered the report of the interim head of finance on 7 February and had made no recommendations. 

Councillor Rawlins, Cabinet member for finance, presented Cabinet’s proposals for the revenue budget and capital programme. He moved and Councillor Rouane, Leader of the council, seconded a motion to approve Cabinet’s recommendations as follows:

To

1.    set the revenue budget for 2022/23, as set out in appendix A.1 to the head of finance’s report to Cabinet on 3 February 2022;

2.    approve the capital programme for 2022/23 to 2026/27, as set out in appendix D.1 to the report, together with the capital programme changes as set out in appendix D.2 and appendix D.3 to the report;

3.    set the council’s prudential limits, as listed in appendix E to the report;

4.    approve the medium-term financial plan to 2026/27, as set out in appendix F to the report;

5.    allocate £500,000 to fund the Communities Capital and Revenue grant scheme;

6.    ask officers to review the Medium-Term Financial Strategy following the announcement by the Secretary of State for Levelling Up, Housing and Communities of changes to the council’s future funding streams.

In introducing the budget proposals, the Cabinet member stated that the budget would help chart the council back to a more stable financial position and recovery from the position the administration had inherited at the district council elections in 2019.  The council had faced significant financial issues in the preparation of the budget.  Its council tax was the fifteenth lowest in the country for a shire district and well below the national average; the council was unable to increase its council tax significantly.  The council had not benefitted from the business rates retention scheme and, whilst the council had benefitted from the New Homes Bonus scheme, this was under review by the government and was expected to be less generous in future.      

The revenue budget set for  ...  view the full minutes text for item 72

To receive any recommendations from the Scrutiny Committee meeting held on 7 February 2022 on Cabinet’s budget proposals and to consider whether those budget proposals should be amended. 

To consider the head of finance’s report (to follow). 

Cabinet considered the head of finance’s report on the budget for financial year 2022/23.  The report included a draft revenue budget, a capital programme for the period 2022/23 to 2026/27, the prudential indicators, and a medium term financial plan covering 2022/23 to 2026/27.  Cabinet was asked to recommend the report to the Council meeting on 17 February 2022. 

Councillor Ian White, Chair of the Scrutiny Committee, addressed Cabinet on the process for the committee to consider the draft budget.  This year the committee was trying a new method.  It would meet on 7 February to consider Cabinet’s budget proposals.  The committee would consider whether to make any recommendations to Cabinet before the Council meeting on 17 February.  For this purpose, the leader had set a reserve date for a Cabinet meeting on 8 February to consider any recommendations from Scrutiny Committee and to consider whether Cabinet should amend its budget proposals to Council.  Councillor White thanked the leader, Cabinet members and the head of finance for their understanding and assistance, and reported that the success or otherwise of this trial would be reviewed at a later date. 

The Cabinet member for finance introduced the report.  The budget proposals would help chart the council back to a more stable financial position.  The council’s finances were recovering from the position the administration had inherited at the district council elections in 2019.  The council’s finances were also recovering from the Covid-19 pandemic, which still was ongoing.  The Cabinet member for finance praised his predecessor for work in starting this recovery. 

This year Cabinet was keen to do more to implement the corporate plan and focus on financial sustainability.  To assist, a thorough review of the council’s budget expenditure had been carried out.  This had achieved substantial revenue base budget savings.  He thanked officers for their work.  This had been helped by the council’s accountancy team returning in-house.  He believed that many of the decisions made by the council since 2019 were beginning to bear fruit, as reflected by the significant savings in the base budget.  There was now more income and less expenditure, all without having to cut services provided to local residents. 

The Cabinet member reported that this year’s budget had been prepared at a time when the council faced key financial challenges.  The council tax in 2021/22 was the eighth lowest in the country for a shire district council and significantly below the national average, despite South Oxfordshire district being in the expensive South East.  The council was restricted in how much it could increase its council tax.  Also, the council had not benefitted from the business rates’ retention scheme.  Although it had benefitted in the past from the new homes bonus scheme, the continuation of this funding was under review by the government.  The result of this was that the cost of running the council exceeded the grant it received from government.  The revenue budget set for 2021/22 had predicted that the use of the council’s reserves that was unsustainable  ...  view the full minutes text for item 83